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Spanish Mountain Gold Ltd V.SPA

Alternate Symbol(s):  SPAZF

Spanish Mountain Gold Ltd. is a Canada-based exploration-stage resource company. engaged The Company is engaged in the acquisition, exploration and development of mineral properties. The Company is focused on advancing its 100%-owned Spanish Mountain Gold Project in southern central British Columbia. The Spanish Mountain gold project is located about six kilometers from the village of Likely, in the Cariboo region of central British Columbia, approximately 70 kilometers north-east of the city of Williams Lake. The Company does not generate any revenue. The Company's wholly owned subsidiary is Wildrose Resources Ltd. (Wildrose).


TSXV:SPA - Post by User

Bullboard Posts
Comment by goldhunter11on Aug 10, 2020 4:59pm
246 Views
Post# 31389592

RE:Math oz in ground

RE:Math oz in groundParth77, Your method is one way to evaluate the value of the company.

Another way is to look at the Market Capitalization. Currently, for whatever the reasons, the market decides to give SPA a Mkt Cap of $215M at $0.73/s (295Ms x 0.$73/s = $215M). Is this a reasonable valuation for SPA?

We are now trying to predict the future. Let's say SPA deposit is some 10M (as Sprott says, actually the global value M+I +Infer = 8Moz, as per SPA 2017 PEA, so 10 Moz Sprott used is not a stretch). At least, let's believe that the 10M ozAuEq (it has some silver too) is within reach from the drilling program (they have enough current cash to do the drilling...plus severl more $M when ES exercises his wts). If the value of the ounces in the ground is assigned some C$21.5/oz then the value of the 10 Moz deposit = 21.5 x10M = C$215M, then the market is bang on. In other words, the in-situ value given to SPA deposit is very low (may be it's OK at US$1200/oz, or lower). Now the PoG is over 2000/oz (USD), so the in-situ value should be in the range of  say C$150-200/oz.  At C$200/oz, the value of 10Moz would be C$2B, or 2000M/215M = approximately a 10 bagger.
That's would be a future prediction for SPA. Market Cap = $C$2B for 10Moz. So the current Mkt Cap is way under value,... by  factor of 10, by this simple math.

Next question is how long this would take, within 1 year, 2 years?
Roll your own dice...and GLTA.
GH11
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Parth77 wrote: Have seen a lot of numbers flying around here and on CEO about what SPA is trading at for each oz in the ground.  Some folks have been asking ... how to figure that out ...

Simple stuff.  

Current M&I = 4.1million oz

Market Cap @ .75 = $305,576,608
(This is fully diluted shares of 407,435,478 * .75 = $305,576,608)

Divide $305,576,608 by 4.1mil and you get $74.53 per oz.
(These are Canadian numbers.)

'IF" there are 10 million ounces (in my OPINION there is more than that as the strike on Phoenix is over THREE TIMES AS LONG as the current pit ....) then you get $305,576,608/10mil = $30.56per oz in the ground.

This is the number Sprott is looking at as he has stated several times that he believes that there is at least 10mil oz here ...

At $30.56 per oz in the ground ... this baby has room to run :)

(Just a quick note ... $30.56 Canadian is ONLY $22.89 US)

If we use the low end range of what Sprott is saying oz in the ground should be worth ... $100/US ... then this is a pretty easy five bagger from here.

Feel free to correct my math if I got stuff wrong.  GLTALs


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